In a large mixing bowl, beat together butter, 1 cup granulated sugar and brown sugar until creamy. Mix in eggs, one at a time, until combined. Mix in vanilla. Gradually add in dry ingredients, beating until just combined. Cover and place bowl into the refrigerator to chill for at least 2 hours.

Preheat oven to 375 degrees.

Evenly divide the dough into 4 parts - working with one section at a time, keeping the others covered and in the refrigerator. Divide portion of dough into 12 even pieces. Take one piece of the dough and use it to cover a Rolo candy - when the candy is completely covered, roll dough into a ball.

Set 2 tablespoons granulated sugar into a bowl and dip the tops of the dough into the sugar. Place balls, sugar side up, onto baking sheets lined with parchment paper.

Bake until the cookies are set and the top is just firm to the touch, about 8 to 10 minutes. Remove and let cookies cool for 4 minutes before transferring them to a wire rack to cool completely.

I was thinking you could even just use regular caramel cubes and half them instead of Rolo's. It would probably save a bit of money too, I think. I am finishing up my batch tomorrow since I didn't feel like baking them tonight but I will be sticking with the Rolo's for the first round. Maybe the chocolate around them makes it all the better rather than straight caramel?

I had great fun with this recipe. I used rolos the first time (which makes it a little expensive since I can't seem to find bulk packs of the things!), the people at work ate them very quickly!

I tried them with werthers chewy caramels chopped in half to go inside, as well as blocks of cadbury caramel whip (not sure if this is something you can get in USA, I'm writing from Australia). Cadbury caramel whip is sort of like whipped nougat out of a milky way or mars bar, topped with runny caramel, all inside a chocolate shell. I also made one giant cookie with a caramello koala inside.

I have made these cookies now for about 10 years now and my favorite of all time. I make them a bit different with sugar and pecans on top. Once rolled up with the rolo inside dip one end in a mixture of sugar and pecans then place on the cookie sheet with pecan side up.. makes for a nice little cookie.. I have turned so many people onto this cookie and many have said can you give me the receipe.. i clearly state i could not divulge my secret receipe to everyone...only the special people in my life..My Children love making the cookies with me. Thanks Cathleen for the recipe years ago.. love you.

My niece loves Rolos, so I found this recipe a while back for her annual Christmas cookie which I give her. These cookies were very easy to make, but more importantly, they are SO DELICIOUS! Thank you - these are now her new annual Christmas cookie. (From one fellow Charlottean...)